The water sector faces significant challenges, with pressure on water resources as a result of climate change, increased environmental ambition and the need to balance investment needs with customers facing an increase in the cost of living.
Addressing these challenges and the potential solutions will be a key focus as the sector prepares for Ofwat’s upcoming Price Review (PR24), which covers the period 2025-2030. As part of PR24, Ofwat will set ambitious targets to drive the performance of the water and wastewater sectors in England and Wales and the companies will therefore make crucial investment decisions in the next couple of years to meet these targets and challenges. Frontier continues to advise clients on some of the most pressing issues facing the sector e.g. outcome-based environmental regulation, smart metering, net zero, single social tariff.
Ofwat published its PR24 draft methodology on 7 July, and companies have until 7 September to submit their responses to this. Frontier will be advising our clients on the methodology in the coming weeks.
For an in depth discussion on PR24 with our water experts, please contact PR24@frontier-economics.com.